Putting something aside for my new nephew
Discussion
My younger brother and his wife are soon to adopt a lovely young boy who is 18 months old.
I could not be more proud of the pair of them, it's been a tough slog for them getting this far and it just makes me smile everytime I think about it (especially given Mrs geeks and I were unable to have children and didn't have the strength to go any further)
I would like to try and give him the start my brother and I were didn't get (to be fair neither did my sister in law nor Mrs geeks). I am not wealthy but we get by comfortably (I am no PH Director) I would like to put a small amount aside every month for him, the hope being that by the time he needs to buy a house or whatever there should be a nice lump sum of some kind that will give him that little boost in life.
My financial planning skills extend to an excel spreadsheet each month a pension, a LISA and some Premium Bonds, so as you can see, I am somewhat of a finance dunce beyond some very basic planning for myself.
I would like to keep this off the record from my brother just as something I can surprise them with when the time arises.
How would the more financially astute among us go about this please?
Thanks PH from one very proud older brother and soon to be Uncle geeks
I could not be more proud of the pair of them, it's been a tough slog for them getting this far and it just makes me smile everytime I think about it (especially given Mrs geeks and I were unable to have children and didn't have the strength to go any further)
I would like to try and give him the start my brother and I were didn't get (to be fair neither did my sister in law nor Mrs geeks). I am not wealthy but we get by comfortably (I am no PH Director) I would like to put a small amount aside every month for him, the hope being that by the time he needs to buy a house or whatever there should be a nice lump sum of some kind that will give him that little boost in life.
My financial planning skills extend to an excel spreadsheet each month a pension, a LISA and some Premium Bonds, so as you can see, I am somewhat of a finance dunce beyond some very basic planning for myself.
I would like to keep this off the record from my brother just as something I can surprise them with when the time arises.
How would the more financially astute among us go about this please?
Thanks PH from one very proud older brother and soon to be Uncle geeks
When I did this for my nieces I used F&C Junior Investment accounts ( https://www.columbiathreadneedle.co.uk/en/retl/pla... ) now rebranded CT. These are not tax wrappers but because of that you have the flexibility of when to release the money, I did it at 18 and 21. By investing £50 a month over 18 years they ended up with 40K(20K on 18th and 21st birthday). With the other tax wrappers they own the money at 18 which may or may not be appropriate.
Other providers have their own version of the same product
As your investing over 16-18 years investing in the stock market is best. I used F&C as they have been around for 150 years so safe to just leave it there invested. Then send regular statements and can see the account online.
And investing monthly I never missed the money as it came out of my account same time as my salary hist my account.
Other providers have their own version of the same product
As your investing over 16-18 years investing in the stock market is best. I used F&C as they have been around for 150 years so safe to just leave it there invested. Then send regular statements and can see the account online.
And investing monthly I never missed the money as it came out of my account same time as my salary hist my account.
We also did something with F&C / BMO / Columbia as it is now but for our 3 children when each born.
Started off with a small lump sum and then added to as and when.
All 3 plans taken out with us as Trustees then when each of them reached 18 we changed them into their names only and also converted them to ISA's.
Good straightforward paperwork admin from them and decent / acceptable returns.
Started off with a small lump sum and then added to as and when.
All 3 plans taken out with us as Trustees then when each of them reached 18 we changed them into their names only and also converted them to ISA's.
Good straightforward paperwork admin from them and decent / acceptable returns.
As above really a child’s S&S isa through HL drip feed £100 a month per child and forget about it. Over 18 years it should multiply into a nice nest egg.
Not sure if you can keep this as a total secret from your brother though? He might need to open it as the guardian and you pay into it? I remember when we set them up that relatives could pay in but not sure if you can set up as an uncle.
Either way it’s a great thing you and your brother are doing. So many kids out there who have utterly rubbish childhoods desperate fir people like you to give them a chance.
Not sure if you can keep this as a total secret from your brother though? He might need to open it as the guardian and you pay into it? I remember when we set them up that relatives could pay in but not sure if you can set up as an uncle.
Either way it’s a great thing you and your brother are doing. So many kids out there who have utterly rubbish childhoods desperate fir people like you to give them a chance.
I’d do it myself rather than put it in the child’s name at this stage (unless you have maxed out your own ISA allowances)
Just open an ISA and drip feed into that with the intention that this is the pot that will become the gift when the time comes.
That way, you get to monitor the investments and can choose to use it in the way that you want when the time comes. (House, education, motorbike etc).
Sure you might need to think about IHT and gifts at some point (depending on the way things pan out) but it’s still probably a decent approach imho.
Oh and if you haven’t already - think about a will to cover what you might want to do with the rest should the worst happen
Just open an ISA and drip feed into that with the intention that this is the pot that will become the gift when the time comes.
That way, you get to monitor the investments and can choose to use it in the way that you want when the time comes. (House, education, motorbike etc).
Sure you might need to think about IHT and gifts at some point (depending on the way things pan out) but it’s still probably a decent approach imho.
Oh and if you haven’t already - think about a will to cover what you might want to do with the rest should the worst happen
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